Rachel Reeves defends decision not to restore bankers’ bonus cap

Published

4 months ago

February 1, 2024

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Rachel Reeves has defended her decision not to restore a cap on bankers’ bonuses, arguing businesses do not need “more chopping and changing”.

The shadow chancellor said that when the government scrapped the cap under Liz Truss, Labour did not “feel that was the right priority in that budget”.

But she said much stronger rules were now in place since the 2008 financial crash, when the cap was first introduced, and that it was no longer her priority to restore it.

“What I hear loud and clear from business is that what it will take to get them to invest in Britain is stability and the last thing they need is more chopping and changing,” she said.

“The chopping and changing has got to end if we’re going to give stability to business and that’s why we will not be bringing that back.”

Politics latest:
Labour ‘under no illusions about scale of task ahead’

Addressing Labour’s business conference in central London this morning, Ms Reeves also announced she would not increase the headline rate of corporation tax of 25% during the first term of a Labour government but left the door open to changes in the rate in the future.

She said: “There have been 26 changes to our corporation tax arrangements in this parliament alone. We can’t go on like this.

“The next Labour government will make the pro-business choice and the pro-growth choice: We will cap the headline rate of corporation tax at its current rate of 25% for the next parliament.

“And should our competitiveness come under threat, if necessary we will act.”

Ms Reeves also said Labour would maintain full expensing and the annual investment allowance and would provide a “road map” for business taxation within the first six months of government.

Ms Reeves has sought to portray herself as pro-business during her time as shadow chancellor, in contrast to her predecessor John McDonnell, who led Labour’s economic policy when Jeremy Corbyn was the leader of the Opposition.

Will Labour stick to £28bn a year green pledge?

However, the shadow chancellor is facing scrutiny over Labour’s pledge to spend £28bn a year on green projects until 2030 if the party comes into power.

In a Q&A following her speech, Ms Reeves failed to commit to the policy, which some in Labour want Sir Keir Starmer to drop because it allows the Conservatives to cast doubt on the party’s commitment to fiscal discipline.

Asked by Sky News’s political editor Beth Rigby whether the pledge had become “an albatross around your neck” that “threatens to unravel all the hard work you’ve done to be trusted with economic competence”, Ms Reeves said there were “big opportunities to invest alongside business in the jobs and the industries of the future”.

But she said it was “absolutely essential that all of our policies are consistent with our fiscal rules” and that the green prosperity plan “was no exception to that”.

The shadow chancellor said that after the next budget, the party will “set out our plans and ensure they are consistent with our fiscal rules because they will always take precedence to guarantee the economic security of family finances and of businesses as well”.

Tories attack Labour over bonus cap change

The cap on bankers’ bonuses was first introduced in the wake of the 2008 financial crisis to limit annual payouts to twice a banker’s salary, but it was scrapped by former chancellor Kwasi Kwarteng during Ms Truss’s short time as prime minister.

During Prime Minister’s Questions this week, Rishi Sunak seized on the issue to argue that voters “cannot trust a word he [Sir Keir Starmer] says”.

“I was genuinely surprised that, after recently and repeatedly attacking not just me but the government for lifting the bonus cap, the shadow chancellor has announced, just today, that she now supports the government’s policy on the bankers’ bonus cap.”

Ms Reeves and other senior Labour figures had been vocal critics of the government’s decision to axe the cap during a cost of living crisis, saying only three months ago that the decision to allow unlimited bonuses to be earned again “tells you everything you need to know about this government”.

The issue has caused some division within Labour, with Anas Sarwar, the party’s leader in Scotland, previously criticising Ms Truss as a “Thatcher tribute act” who would rather “boost bankers’ bonuses than help those in need”.

He told reporters in Westminster today that he stood by his previous words but added: “You have got to look at it in the balance. We have got to inspire confidence for them to make the strategic investments, but we can’t return to a situation where they get away with it.

“I’m not here to defend bankers’ bonuses, I’m not here to defend banks. That is something the UK Treasury has got to keep an eye on.”

Stephen Flynn, the SNP’s leader in Westminster and Labour’s main opponent in Scotland, sarcastically praised Mr Sunak for convincing the Labour Party to agree to a “bleak future”, saying it was a “great achievement” for the government.

UK

About 100 sub-postmaster convictions separate to Post Office cases may be ‘tainted’

Published

9 mins ago

May 17, 2024

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About 100 sub-postmaster convictions separate to Post Office cases may be 'tainted'

Prosecutions of sub postmasters by the Department for Work and Pensions could be “tainted” as Sky News reveals officials worked with now discredited Post Office investigators to secure convictions.

Around 100 prosecutions of Post Office staff were led by the Department for Work and Pensions (DWP) between 2001 and 2006.

It is understood that these usually involved the cashing in of stolen order books.

The Post Office itself wrongly prosecuted hundreds of sub-postmasters between 1999 and 2015 – based on evidence from the faulty Horizon accounting system.

The role of government

A Sky News investigation, however, has discovered that information was shared between Post Office investigation teams and the DWP.

Chair of the Justice Select Committee, Sir Robert Neill KC, said as a result DWP convictions “need to be looked at”.

“I hadn’t been aware of that, for example, there may have been material in the DWP case as a result of joint investigations – which suggests a disclosure failure,” he added.

“I think that’s the area they need to look at if we are saying their approach was tainted from the beginning – in the way the investigators adopted things – then joint operations I suspect would be just as tainted arguably as something where it has been the Post Office on its own.”

What was known?

A 2003 DWP report into fraud describes “joint working” and the “sharing of information” with the Post Office.

It also outlines a “Fraud Prevention Board” established by the DWP and Royal Mail Group plc which includes “the exchange of information that directly assists fraud prevention and investigations”.

In addition, separately, a 2003 letter seen by Sky News also indicates a connection between DWP and Post Office investigations.

The letter, from the then post affairs minister Stephen Timms, references the case of Roger Allen, a sub-postmaster from Norwich.

It states: “Subsequent investigations by the police, the Post Office Investigation Department and the Department for Work and Pensions (DWP) led to a prosecution by DWP…”

Roger Allen was convicted in 2004 of stealing pension payments and was sentenced to six months in prison. He died in March of this year.

Mr Allen had pleaded guilty to spare his wife – after his lawyer told him in a letter that there had been “an indication from the Crown that they may discontinue the proceedings against Mrs Allen were you minded to plead guilty”.

Despite the Criminal Cases Review Commission deciding Mr Allen had grounds to appeal against his conviction – it was upheld by the Court of Appeal in 2021.

DWP prosecutions are not covered in upcoming government legislation that will overturn Post Office convictions.

Fighting to clear names

Keren Simpson, Roger’s daughter, has vowed to fight to clear his name posthumously.

She describes her father as a “proud” and “honest” man who “couldn’t face or deal” with the fact his conviction would not be overturned.

She says “in the end he obviously gave up” and there is “very little surviving evidence” because of the passage of time.

“He’s the innocent one,” Keren states. “I don’t see why he’s got to try and prove it. They have got to try and prove it, and show what evidence they actually had on my dad.

“Because the Department of Work and Pensions have put a statement out saying there was surveillance and witness testimonies and physical evidence to show it.

“Show me it.”

Investigation failures?

Sky News has also seen documents that suggest failures by DWP investigators in a different case in the 2000s.

It involved a sub-postmaster who decided to plead not guilty and was acquitted of stealing by a jury.

In one extract it says a “senior investigating officer” was “willing to admit in open court that (they) had been neglectful in (their) duty in securing evidence”.

Another document appears to show a failure to review transaction logs used as evidence against the sub-postmaster.

Some logs appear to show that the accused did not cash the “dockets”, used to collect pension payments.

Other transaction logs indicate the sub-postmaster was not present at a particular branch when the theft was alleged to have occurred.

Chris Head, former sub-postmaster and a campaigner for others, has also seen the documents and says they point to a “deeply flawed” DWP investigation.

“…they failed to obtain all transaction logs for the entirety of this case, but the ones that they have, they have they clearly haven’t looked at.”

He believes there are “more cases out there” which could be “part of a miscarriage of justice”.

A Department for Work and Pensions spokesperson said: “We do not recognise these claims.

“DWP investigates offences against the welfare system to protect taxpayers’ money, and between 2001 and 2006 a small number of Post Office staff were convicted for welfare-related fraud.

“These cases involved complex investigations and were backed by evidence including filmed surveillance, stolen benefit books and witness statements – they did not rely on Horizon evidence, and this has been accepted by the Court of Appeal.”

The Post Office says it “continues to help other prosecuting authorities to ensure that they have every assistance in taking their work forward”.

“This includes sharing all the information we have in relation to prosecutions which have been brought by other prosecutors.”

Meanwhile, Lord Sikka has tabled an amendment in the House of Lords to the Post Office (Horizon System) Offences Bill to include all DWP convictions.

UK

What is cryptosporidium? The diarrhoea-causing parasite found in Devon drinking water

Published

8 hours ago

May 16, 2024

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What is cryptosporidium? The diarrhoea-causing parasite found in Devon drinking water

An outbreak of a waterborne disease in Devon has prompted urgent warnings for residents to boil their tap water.

At least 22 cases of cryptosporidiosis disease have been confirmed in and around the town of Brixham in South West England.

But what is the parasite that is making people sick, what are the symptoms of being infected with it and how serious can it be?

What is cryptosporidiosis disease?

Cryptosporidiosis is the disease caused by the parasite cryptosporidium.

Often shortened to crypto, infections can be caused by drinking contaminated water or swallowing contaminated water in swimming pools or streams.

It can also be acquired through contact with the faeces of infected animals or humans.

What are the symptoms?

The symptoms of cryptosporidiosis include:

• profuse watery diarrhoea
• stomach pains
• nausea or vomiting
• low-grade fever
• loss of appetite

How long does it last?

Most people develop symptoms within one to 12 days of picking up the parasite.

Symptoms usually last for about two weeks, but can last up to six weeks or longer when the immune system is not working properly.

During the illness, you might think you are getting better but the illness returns a couple of days later before you fully recover.

How serious is it?

Most people recover, but in people with severely weakened immune systems it can cause severe disease and can be fatal.

Serious cases and death used to be more common, according to Paul Hunter, professor in medicine at the University of East Anglia (UEA).

This is because before effective antiretroviral treatments were introduced for HIV/AIDS, people living with these illnesses would not recover if they picked up cryptosporidiosis.

Who is most at risk of serious illness?

People with weak immune systems are at greater risk of serious illness. This includes:

• people on some immunosuppressive drugs, for example cancer or transplant patients
• people with untreated HIV/AIDS
• malnourished children

Does it need treatment?

There is no specific treatment for cryptosporidiosis.

It important to drink plenty of fluids as diarrhoea or vomiting can lead to dehydration, according to advice from the UK Health Security Agency (UKHSA).

You might also want to talk to a pharmacist about oral rehydration sachets to help replace the sugar, salts and minerals the body has lost.

Dr Lincoln Sargeant, Torbay’s Director of Public Health, said anyone with “severe symptoms like bloody diarrhoea” should contact NHS 111 or their GP.

Severe cases may require hospital treatment.

How do you know if you have crypto?

The symptoms of crypto are similar to other stomach bugs, so the only way to know for sure if you have it is for your doctor to send a sample of your faeces to be tested in a laboratory.

How can you stop the illness spreading?

If you are ill, stay away from nursery, school or work while you have symptoms, and for at least 48 hours after they stop.

You should also avoid swimming for two weeks after being unwell.

You should not prepare food for anyone else until 48 hours after diarrhoea has stopped.

Make sure you’re using good handwashing practices too, washing your hands thoroughly when handling food and after using the toilet.

The UKHSA also advises washing bedding and towels on the hottest possible cycle.

UK

Lucy Letby: Families of victims want inquiry live streamed to stop ‘grossly offensive’ conspiracy theories

Published

8 hours ago

May 16, 2024

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Lucy Letby: Families of victims want inquiry live streamed to stop 'grossly offensive' conspiracy theories

The inquiry into how nurse Lucy Letby was able to murder babies at a hospital in Chester will begin to hear evidence in September.

Lawyers for the families of Letby’s victims told a preliminary hearing that the inquiry should be live streamed to the public to prevent the spread of “grossly offensive” conspiracy theories.

Letby was sentenced to 14 whole-life orders after she was convicted of murdering seven babies and attempting to murder six others while working on the neo-natal unit at the Countess of Chester Hospital in 2015 and 2016.

At the preliminary hearing, inquiry chair Lady Justice Thirlwall heard submissions on whether the hearings should be publicly broadcast.

Peter Skelton KC, on behalf of the families of six babies, said Letby’s crimes continued to be the subject of conspiracy theories online.

“One of the most effective antidotes to those theories and the damage they cause will be to see and to hear the people involved in the hospital give a true and comprehensive account of the facts,” he said.

But Andrew Kennedy KC, representing the Countess of Chester, said there was a “high level of anxiety” from staff at the prospect of giving evidence which was live streamed.

He said: “If a witness is concerned about live-streaming then if we can remove that concern we can, we would suggest, encourage candour, frankness and openness.”

Richard Baker KC, representing some of the other families, said: “Their desire in this case is for change and so that others do not experience what they have experienced.”

They were “saddened” and “concerned” at the suggestion the lack of transparency might continue, he said.

Lady Justice Thirlwall will give her decision on whether the hearings will be broadcast at a later date.

She had begun the proceedings with a pause for reflection on the “lives lost”, “injuries sustained” and “suffering” of the families.

The hearing was told 188 requests for information had been made to individuals including midwives, nurses, doctors, managers and members of the hospital board.

The inquiry hearings are scheduled to begin on 10 September at Liverpool Town Hall.

The parents of the babies will be among the first to give evidence.

Counsel to the inquiry Rachel Langdale KC told the hearing: “There are no sides. It is a search for the truth.”

Last month Letby asked the Court of Appeal for permission to mount a full legal challenge to her conviction. Judges are due to rule on this at a later date.

The former nurse is due to face a re-trial next month on one charge of the attempted murder of a baby in February 2016.